Coherent (COHR)
Information Technology · $61.1B market cap · SEC CIK 0000820318
fundamentals score out of 100
Next reports on Nov 3, 2026, with analysts expecting $2.00 in earnings per share.
The case for COHR
- Revenue up 22.5% on the year.
- Earnings per share up 1617.2%.
- Has compounded revenue at 18.0% a year over five years.
- Current assets cover the near-term bills 2.4 times over.
- Up 194.7% over the past year.
The case against
- Very expensive at 75.9× earnings. Years of growth are already in the price.
- Long-term debt of $3.2B would take 5 years of operating cash flow to repay.
- Swings harder than the market (beta 2.18).
- Return on equity of 8% is lower than 85% of Information Technology companies.
- Free cash flow is only 0.3% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 25 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 84 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 40 |
| Momentumhow the price has behaved lately | 58 |
| Stabilityhow violently it moves, what it owes and what it pays you | 17 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 75.9× |
|---|---|
| Price / book | 7.08× |
| Price / sales | 8.6× |
| Revenue growth (YoY) | +22.5% |
| EPS growth (YoY) | +1617.2% |
| Gross margin | 38% |
| Operating margin | 15% |
| Net margin | 11% |
| Return on equity | 8% |
| Debt / equity | 0.30× |
| Current ratio | 2.43 |
| Dividend yield | 0.02% |
| Beta | 2.18 |
| 52-week range | $102.14 – $440.00 |
| Position in that range | 62% of the way up |
| 3-month return | -17.5% |
| 1-year return | +194.7% |
Five years of financials, as filed
Pulled from Coherent's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.8B | $4.7B | $5.2B | $3.3B | $3.1B |
| Operating income | — | $96.1M | -$37.1M | $414M | $402M |
| Net income | $49.4M | -$156M | -$259M | $235M | $298M |
| Operating cash flow | $634M | $546M | $634M | $413M | $574M |
| Capital expenditure | $441M | $347M | $436M | $314M | $146M |
| Total assets | $15.1B | $14.2B | $14.7B | $14.1B | $7.6B |
| Total liabilities | $6.2B | $6.2B | $6.5B | $6.7B | $3.4B |
| Shareholder equity | $8.5B | $5.2B | $5.5B | $5.2B | $3.5B |
| Cash | $864M | $918M | $856M | $897M | $2.6B |
| Long-term debt | $3.2B | $3.8B | $4.1B | $4.4B | $943M |
| Free cash flow | $193M | $199M | $198M | $99.0M | $428M |
| Operating margin | — | 2.0% | -0.7% | 12.5% | 12.9% |
| Net margin | 0.8% | -3.3% | -5.0% | 7.1% | 9.6% |
| Diluted shares | 155M | 152M | 138M | 117M | 115M |
Share count is up 34.5% over 4 years. Your slice has been diluted.
What Coherent says it does
Description of Business of this Annual Report on Form 10-K for further information Trends and Other Matters Affecting Our Business Industry Conditions Coherent is a global leader in photonic technology. Our broad photonic technology platform is foundational to the performance and scalability of AI datacenters. AI runs on compute, but it scales on optical connectivity. Coherent is at the center of an extraordinary expansion in optical networking infrastructure, driven by the rapid growth of AI, the transition from copper to optical connectivity, and the increasing need for bandwidth and energy efficiency across increasingly complex datacenter architectures. We continue to experience continued strong demand in our Datacenter and Communications markets. The increasing investments by hyperscale and other cloud providers in AI datacenter infrastructures have significantly boosted demand for our datacenter transceivers. Elevated demand for…
Risk factors COHR lists in its 10-K
- Reporting Segments and Business Units
- Precision Manufacturing Market Vertical
- Semiconductor Capital Equipment Market Vertical
- Display Capital Equipment Market Vertical
- Scientific Research Market Vertical
- Consumer Electronics Market Vertical
- Trade Secrets, Patents, and Trademarks
- Executive Officers of the Registrant
- Risks Related to Our Business, Operations and Industry
- Our competitive position depends on our ability to develop new products and processes and may require significant investment
- A significant portion of our business is subject to cyclical market factors and we may fail to accurately estimate the size and growth rate of our markets and our customers’ demands
- Products that fail to meet specifications, are defective, or are otherwise incompatible with end uses could impose significant costs on us
- We may encounter increased competition, and we may fail to accurately estimate our competitors’ or our customers’ willingness and capability to backward integrate into our competencies and thereby displace us
- We may not be able to achieve expected returns from strategic investments, including capacity expansions